Resellers report rising revenues
VARs see light at the end of the tunnel
2004 could be the year that the IT sector finally shakes off the grip of the downturn, with resellers reporting that fourth-quarter 2003 revenues will see a sharp increase on Q4 2002.
According to analyst Canalys, 40 per cent of resellers responding to its Channel Panel survey said Q4 revenue will be up by more than 10 per cent on Q402, and two-fifths reported a better or much better than expected Q4.
Of the 102 respondents, over 54 per cent said their Q4 revenue would be in line with expectations, leaving only 10 per cent of respondents disappointed.
"This growth is due to the fact that during the past six to eight months IT budgets have been freed up again," said Rachel Powers, an analyst at Canalys.
"Spending is increasing and resellers have a more positive attitude for 2004."
Demand for Wi-Fi and mobile technology have been driving this growth. But short supply of LCD screens meant revenues could have been still higher.
Paul Barlow, managing director of reseller Equanet, said: "There has been a lot of growth driven by the SME market, but there has been a corporate resurgence too."
Torrance Gemell, sales manager at VAR Datamart, was also optimistic. "Q4 growth met with our expectations," he said. "I expect IT budgets will increase in 2004, if only marginally."